Liberty Property Trust has entered into an agreement to acquire the operating partnership of Cabot Industrial Value Fund III for a purchase price of $1.5 billion.
When completed, the transaction will increase Liberty’s industrial platform by approximately 23 million square feet and will add 177 properties in 24 new and existing Liberty industrial markets. Liberty will acquire 3.2 million square feet in Chicago, an existing Liberty market.
The Cabot portfolio was 93 percent leased as of May 31 to 436 tenants. Liberty has received a commitment for a $1.3 billion senior unsecured bridge loan. It intends to permanently finance the transaction with a combination of debt and equity financing. Liberty also intends to dispose of certain operating properties that are expected to generate approximately $150 million of additional proceeds.
